Congratulations. You graduated from college and just landed that first full-time job.
While it's time to celebrate, it's also time to make some serious financial decisions. Rianka Dorsainvil, a millennial certified financial planner and owner of Your Greatest Contribution, has some solid advice for you: Enroll in your employer's 401(k) plan as soon as possible to save as much as you can, and spend time learning about the different options and investments your plans offer.
Dorsainvil says it's important for everyone to understand all the benefits offered by a new employer — and at the top of the list is a 401(k) plan. She works with Gen Y clients and helps navigate them through their financial lives, urging these new investors to ask key questions to ensure they truly understand their investment options.
"A 401(k) plan can be complicated, so it's clear that people may be overwhelmed — and that's OK," she said. "Take a deep breath and just make sure you do your homework so you can fully understand the benefits of the plan your company offers."
Take advantage of a company match, if available, says Dorsainvil. Most employers that offer a 401(k) plan will match at least some of your contributions. In other words, they'll contribute free money into your retirement account if you make contributions of your own.